For the first time ever, Volkswagen Group has shared detailed Q1 2023 financial results for its volume brand vehicles, including its namesake brand, Seat/Cupra, and its commercial division. The Group unit’s report shows promising growth in sales, profits, and most importantly, BEV deliveries. Here’s the latest.
Volkswagen Group continues to try and grow its global market share by embracing full-electrification. Several of the company’s sub-brands have reiterated their support of BEV production at a time when many European automakers are clinging to alternatives like e-fuels.
In late April, Volkswagen Group shared encouraging Q1 2023 financial numbers which included the delivery of over 141,000 BEVs globally. As such a large automotive conglomerate, VW divides its brands into three specific groups in addition to several other business units – Volume, Premium, and Sport/Luxury.
Today, Volkswagen Group shared more granular Q1 financials for its volume brands for the first time ever. Its mass volume brands – led by its namesake marque – are responsible for a majority of BEV deliveries and sales.
Volkswagen Group’s Q1 numbers bolstered by volume EVs
According to Volkswagen, its Brand Group Volume sales revenue climbed 36% in Q1 2023 to 33.16 billion euros ($36.57B). Before special items, the volume group’s operating profits nearly doubled (99%) to 1.74 billion euros ($1.92B).
These early numbers are promising as Brand Group Volume already predicts 2023 will deliver a significantly higher consolidated operating return on sales compared to 2022 when it posted 3.6%. The volume branch’s goal is to reach 8% by 2025.
While BEV sales and deliveries still remain a small fraction of the overall totals for Volkswagen Group, quarterly growth continues to trend upward and is easily led by Brand Group Volume. The unit sold 1.19 million vehicles in Q1 2023 – over a million of which were Volkswagen brand passenger cars.
Of those total sales, roughly 70,000 vehicles were fully-electric, meaning the VW passenger brand accounted for just under half of all BEVs delivered by the entire Group. Overall, Brand Group Volume delivered 97,100 BEVs in Q1 2023, a 49% increase compared to the first quarter of 2022.
Other Group volume brands like Skoda and VW Commercial Vehicles (who builds the ID.Buzz) both saw sharp increases in sales and BEV deliveries this quarter.
As it continues its transition into an all-electric brand Seat/Cupra saw its sales revenue and deliveries both increase significantly, leading it to its strongest first quarter to date. Member of the Volkswagen Group Board of Management in charge of the Brand Group Volume Thomas Schäfer spoke:
Strong brands, lean engine room: targeted cooperation between the brands enabled us to expand existing synergies and scaling benefits in the past few months and at the same time increase our financial robustness and innovation strength. The Brand Group Volume’s key figures prove we are on the right track.
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